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On-premises software is a type of software delivery model that is installed and operated from a customer's in-house server and computing infrastructure. It utilizes an organization’s native computing resources and requires only a licensed or purchased copy of software from an independent software vendor.
On-premises software is also known as shrink wrap.
On-premises software is one of the most common, traditional methods of using enterprise and consumer applications. On-premises software typically requires a software license for each server and/or end user. The customer is responsible for the security, availability and overall management of on-premises software. However, the vendor also provides after sales integration and support services.
On-premises software is more expensive than on-demand or cloud software because it requires in-house server hardware, capital investment in software licenses, in-house IT support staff and longer integration periods. However, on-premises software is considered more secure, as the entire instance of software remains on the organization’s premises.